Business, 04.02.2022 09:40 user434568

When comparing households at different income levels, economists find that consumption spending grows more slowly than income. Assume that when income grows by 50%, from
$10,000 to $15,000, consumption grows by 25%, from $8,000 to $10,000. Compare the per-
cent of income paid in taxes by a family with $15,000 in income to that paid by a family
with $10,000 in income under a 1% tax on consumption purchases. Is this a proportional,
progressive, or regressive tax?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:50

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

Answers: 1

Answer

Business, 21.06.2019 20:30

At a young age, ebony's coaches were confident she had the potential to be a world-class swimmer with a future coaching career. after four years on an athletic scholarship and olympic experience under her belt, she chose a different path. with her savings and personal connections, she rented a corner building in a bustling san francisco neighborhood and pursued her dream: a surf shop business. ebony's dream was rooted in which basic right of free-market capitalism?

Answers: 3

Answer

Business, 22.06.2019 17:50

What additional information about the numbers used to compute this ratio might be useful in you assess liquidity? (select all that apply) (a) the maturity schedule of current liabilities (b) the average stock price for the industry (c) the average current ratio for the industry (d) the amount of current assets that is concentrated in relatively illiquid inventories

Answers: 3

Answer

Business, 22.06.2019 20:50

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.

Answers: 2

Answer

You know the right answer?

When comparing households at different income levels, economists find that consumption spending gr...

Questions